A traditionally profitable business segment, insurance is necessary to bring stability to firms (property and casualty, D&O, others) and individuals (life insurance, health insurance, others). However, declining bottom lines across the industry imply that a change is in order. What is causing this change?
(i) Technological Disruptions: Data and analytics form the core of the insurance market. However, the forces of innovation and disruption are looking to outperform traditional insurance stakeholders, by closely evaluating the insurance value chain to leverage the customers preference for better services, at lower costs.
(ii) Changing Risk Dynamics: Third-party liability claims, fires, automobile accidents and workplace mishaps - all core sources of premiums - are declining year-on-year. This implies that the insurance industry premiums are experiencing a downward trend. However, with change, also comes opportunity; rapidly emerging sectors include cyber risk in mature markets, and a slew of non-automotive insurances at nascent stages in emerging economies. Across typical sub-verticals, it is time to integrate overdue, relevant changes to typical products facing lower demand, so as to leverage behavioral changes rather than lose share in these markets. The advent of IoT is also disrupting physical asset management processes, which are connected deeply with non-life insurance sectors.
(iii) Accessing Capital: In the world of capital, cyclical upheavals and downturns are routine. Traditional financial market return rates being low, (re)insurance market appears to attract higher capital , despite the downswing in the global economy
(iv) Geographical Aspects: Mature markets accounted for about 83% of all premiums, as of 2015, while accounting for close to 44% of the global growth in premiums; the rest is accounted for by emerging economies.
Scope of the Report
Key Offerings by Mordor Intelligence
How much is one of the world's most profitable industry worth, in the current year? How much will it be worth, by 2022? Industry size is segmented by its most profit making sub-verticals (includes: P&C, L&H, automobile, D&O, Catastrophe, cyber risk), with detailed insights provided, geographically and by further sub-market types.
Industry Trends & Market Dynamics
Macroeconomic, microeconomic, and even unanticipated factors, ranked according to the extent of the effects, influencing the insurance market at the global level. These include drivers helping the business ride the wave, barriers that could eventually obstruct, and potential opportunities to take advantage of.
Data and Analytics form an indispensable component of the (re)insurance market. Based on the company’s position in the value chain and the company's vision and mission for the future, Mordor provides the most relevant innovations (operational, technological, disruptive, and others) in the field.
Capital Trends & Metrics
How is capital access changing in (re)insurance segments, across regions and industry sub-verticals? What are the influencing factors in this exchange of capital? How can these insights be integrated to contribute to the short-term goals?
This is the most comprehensive segment of the report, enlisting competition across pertinent points in the value chain.
An analysis of the competition for companies, segmented by their position in the market is provided. The coverage includes re-insurers, alternative capital sources, traditional insurance companies (listed exhaustively by sub-segments), and startups leveraging technologies and innovations. This section of the report facilitates sound and unbiased overview of the respective companies' strategies, in detail and throws light on how and why companies are adapting to the opportunities and challenges they foresee in the future while also competing in the existing structural environment of the insurance products and services marketplace.
1. Executive Summary
2. Research Methodology
3. South America Insurance Industry Outlook
3.1 GDP and Economic Activity
3.2 Consumer Confidence
3.4 Employment Rate
3.5 Interest Rates
3.6 Household Wealth
3.7 Growth in Services
3.8 Growth in Manufacturing
4. South America Regulatory Environment, Insurance and Insurance Investment Laws and Key Policy Initiatives
5. South America Market Dynamics
5.5 Technological Innovations (Includes Blockchain)
5.6 Alternative Capital on the RIse
6. South America Market Segmentation
6.1.1 Market Size (USD million)
6.1.2 Total Direct Premiums (USD billion), Historical and Future Trends
6.1.3 Claims Payments (USD billion), Historical and Future Trends
6.1.4 Capital Structure
184.108.40.206 Investment Income
220.127.116.11 Net Income & Return on Equity
18.104.22.168 Returns on Surplus
22.214.171.124 Portfolio Allocation (Between Bonds, Shares, Real Estate & Between Public Sector Bonds & Private Sector Bonds)
126.96.36.199 Average Real Net Investment Return, by Type of Insurer
6.2.1 Market Size (USD million)
6.2.2 Total Direct Premiums (USD million), Historical and Future Trends
6.2.3 Most Costly Insurance Losses by Years (USD million)
6.2.4 Claims Payments (USD billion), Historical and Future Trends
6.2.5 Capital Structure
188.8.131.52 Investment Income
184.108.40.206 Net Income & Return on Equity
220.127.116.11 Returns on Surplus
18.104.22.168 Portfolio Allocation (Between Bonds, Shares, Real Estate & Between Public Sector Bonds & Private Sector Bonds)
22.214.171.124 Average Real Net Investment Return, by Type of Insurer
7. Geographies Covered in this Study
7.1 South America
8. South America Competition Profiling
8.1 Bilateral or Domestic Insurance Associations of Note
8.2 Market Share Analysis
8.3 Key Player Profiles
8.3.1 Industry Vertical, Position in the Value Chain, Market Demand Generating Factors)
8.3.2 Net Income
8.3.3 Strategies for Operation (Includes Innovations and Disruptions of note)
8.3.5 Country of Operation
8.4 Companies Covered (Not-Exhaustive)
8.4.1 Berkshire Hathaway
8.4.4 Japan Post Holdings
8.4.5 Assicurazioni Generali
8.4.6 Prudential Plc
8.4.7 China Life Insurance
8.4.8 Ping An Insurance
8.4.9 Legal & General Group
8.4.10 Munich Re